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Indian law enforcement agencies are raising alarms after a sharp rise in fraud cases involving fake crypto trading applications, with retirees emerging as the primary targets.
Police say scammers are exploiting age-related gaps in digital literacy, using messaging apps, fabricated investment dashboards, and false promises of easy profits to drain victims’ life savings across multiple states.
Authorities confirmed that the scams, reported between late December and mid-January, involve coordinated networks that lure elderly individuals into WhatsApp investment groups before directing them to download fake crypto trading applications that simulate legitimate platforms.
Victims typically only realize the deception after communication is abruptly cut off and withdrawal requests are blocked.
Police officials say the fraudsters deliberately target retirees because they often have access to retirement funds and limited familiarity with how cryptocurrencies and online trading platforms operate.
The schemes are designed to build trust quickly, presenting investment opportunities as low-risk and time-sensitive.
“The elderly are being targeted because fraudsters assume limited technical awareness and a higher level of trust,” — Cyber Crime Police official, Hyderabad, according to a police briefing.
In most cases, victims are enticed with screenshots showing fabricated profits, testimonials from supposed group members, and assurances of expert guidance.
Once funds are transferred, the scammers gradually increase payment demands, often framing them as taxes, clearing charges, or verification fees required to unlock profits shown on the app.
Police note that fake crypto trading applications often display rising balances that have no connection to real market activity, giving victims a false sense of success while their money is being siphoned off.
One of the first cases registered this year involved a 64-year-old retired banker from Secunderabad, who reported losing more than Rs. 1.25 crore after being lured into a bogus crypto trading scheme operating under the name “Capstone.”
According to police records, the fraud occurred between December 29 and January 12.
The victim told investigators he was invited to a WhatsApp group titled “Team B Club Internship Group 39,” where members shared screenshots claiming large gains from crypto and IPO trades.
He was instructed to download a trading app via a link sent from a U.S.-based phone number.
Police said the retiree made approximately 15 transfers from three personal bank accounts to 11 different accounts provided by the scammers.
The fake crypto trading application showed his balance rising to Rs. 1.9 crore, but every withdrawal attempt was blocked.
“They kept asking for additional payments in the name of clearing charges,” — Investigating Officer, Cyberabad Cyber Crime Police.
When the scammers demanded an additional Rs. 58.58 lakh, the victim became suspicious.
After prolonged attempts to retrieve his funds failed and communication ceased, he reported the matter. By January 15, police confirmed receiving three similar complaints, with combined losses exceeding Rs. 1.2 crore.
In another registered case, a 68-year-old retired employee from Manikonda alleged he was defrauded of more than Rs. 50.8 lakh by individuals posing as analysts from a stock brokerage firm.
He was added to a WhatsApp investment group and directed to register on a platform supported by a fake crypto trading application.
A third complaint involved a 76-year-old retiree from Secunderabad, who said scammers claiming to be stock market experts persuaded him to invest in IPO-related trades between December and January. He reported losing Rs. 46.25 lakh after repeated transfers.
Police also documented a fourth case involving a 45-year-old retired employee who lost Rs. 32.1 lakh to fraudsters promising access to U.S. stock investments through proprietary applications.
“All four cases follow a similar pattern of deception using fake platforms and messaging apps,” — Senior Officer, Telangana Cyber Security Bureau.
Investigators believe the scams are linked to organized networks operating across jurisdictions, making recovery of funds particularly challenging once they are laundered through multiple accounts.
In response to the growing number of cases involving fake crypto trading applications, police have issued public advisories urging citizens, especially retirees, to exercise extreme caution when approached with unsolicited investment offers.
“Any investment opportunity promising guaranteed or unusually high returns should be treated as suspicious,” — Hyderabad Cyber Crime Police, in a public advisory.
Authorities recommend that individuals verify platforms through official regulatory channels such as the Indian Cyber Crime Coordination Centre (I4C) and report suspicious activity via the National Cyber Crime Reporting Portal.
Police also advise involving trusted family members or licensed financial professionals before making crypto-related investments.
The warning comes as digital asset scams continue to evolve, with fake crypto trading applications increasingly mimicking legitimate platforms in design and functionality.
Law enforcement agencies say public awareness remains the most effective defense, as recovery rates remain low once funds are transferred.
As investigations continue, police stress that vigilance, verification, and professional guidance are critical to preventing further losses among vulnerable populations increasingly targeted by crypto-related fraud.
